Turkey may double natural gas imports from Iran

Turkey may double natural gas imports from Iran if the two countries can agree on a price, says the Turkish energy minister.

Taner Yildiz said in an interview with Reuters on Thursday that natural gas purchases from Iran was a key topic in Prime Minister Recep Tayyip Erdogan’s recent visit to Iran, but added that the two sides have yet to agree on the price.

"We have discussed how we could increase our imports to 20 billion cubic meters and the price mechanism needed for that," Yildiz said, adding that Turkey has insisted that Iran reduce the gas price.

He said that Iran’s price offer was not satisfactory for Turkey, adding “Our teams will continue to work” on the issue to agree on a price and sign a deal with Iran. Turkish Prime Minister Recep Tayyip Erdogan paid an official visit to Iran this week to hold talks with Iranian officials and to bolster trade and energy ties with the Islamic Republic.

During his two-day visit, the Turkish premier called for closer economic relations between Tehran and Ankara, stressing that his country is in need of Iran’s energy resources, including natural gas.

Yildiz said that Turkey has also discussed a barter system with Iran through which it could swap various goods with energy imports, but he did not give further details.

Iran owns the world’s second-largest natural gas reserves after Russia, and is also Turkey’s second biggest gas supplier after Russia.

Iran’s natural gas is of crucial importance to Turkey as the energy-hungry country uses a significant portion of imported Iranian gas to generate electricity.